Fraud Protection

Protecting Your Account Information

Monitoring is the first line of defense.

The security and confidentiality of your personal and account information is always a priority at AgCountry Farm Credit Services. We have robust defenses against cyberattacks. But we aren’t the only – or even the primary – way hackers can get into your information and account.

Being vigilant in monitoring your own accounts and reporting any suspicious or unauthorized activity in a timely manner is critical in protecting your business accounts with us.

Common Fraud Tactics

ACH Fraud

ACH debit fraud occurs when a third party initiates an unauthorized electronic withdrawal from their victim’s account. All the fraudster needs is the account number and bank routing number, which are readily available on any check. Using a vendor’s online payment functionality, the fraudster enters the account number and bank routing number as his own, and pays his bill.

Because the ACH codes typically used for these types of payments categorize them as “consumer” transactions, the ACH Network allows a longer timeframe for returns of unauthorized debits, so these fraudulent transactions are often recovered. However, ACH debit still has the potential for significant losses.

Hand holding a phone open on the accounts page on the AgCountry app

Check or Draft Fraud

While Banks offer checks to their customers, AgCountry offers drafts to its customers. Drafts are used by customers to access their operating loan. Check/draft fraud accounts for the largest financial losses across all types of fraud. The information needed to commit draft fraud is readily available on any legitimate draft payment. Drafts or statements are intercepted in the mail, or payroll or vendor checks/drafts may be “sold” to fraudsters. A business has a very short window (the next business day) to reject an unauthorized draft posted to its operating loan and ensure the funds are recovered.

Alteration

Changing the payee name, the draft amount or both. A fraudster intercepts a draft and uses a "washing" technique to remove information such as the payee or amount. The fraudster inserts new information and cashes the draft under the falsified name. The draft flows through the banking system as normal using the original account and bank routing numbers.

Payee Endorsement

A fraudster intercepts a draft, forges the payee's endorsement and deposits or cashes it. The draft could even be deposited electronically without any endorsement at all. The theft may remain undetected for weeks or months until the intended payee follows up on the missing payment.

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Counterfeit

A fake draft created using a customer's actual account and bank routing numbers. Using commonly available printing technology, the fraudster creates a draft, with or without the customer's logo, and inserts a payee name and amount. Check/draft stock security features, while important, only help protect against draft alternations, not counterfeits.

Lost or Stolen Drafts

Issued drafts and new blank draft stock are easily stolen from an unsecured postal mailbox, giving the scammer the raw materials to perpetuate draft fraud.

Fraud Protection Best Practices

Protect Personal Information

Never provide sensitive personal information, such as a Social Security number or date of birth, on a phone call, regular email or text message that you did not initiate.

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Verify Payment Authenticity

Never pay unexpected invoices or invoices with new payment instructions without directly verifying the invoice’s authenticity with the vendor via a trusted phone number.